Naira depreciates to N540/$ at parallel market

Naira at the parallel market depreciated by 0.93 per cent to close at N540 against the dollar on Thursday.

Also at the parallel market, the local currency  was down by  0.14per cent and 0.48per cent against the Pound sterling and euro to close at N740 and N632 respectively.

The exchange rates have been on a downward slope, after the suspension of foreign exchange transactions with Bureau de Change operators. Same day last week the national currency traded at N530 against the dollar.

CBN had ban on foreign exchange sales to bureau de change operators, and an indefinite suspension issuance of licences to money changers.

The bank then instructed commercial banks to set up teller points in branches, so that dollars and other foreign currencies would be made available to Nigerians

The naira has been on a constant decline since the Buhari-led administration came into power. When President Muhammadu Buhari assumed his responsibilities in May 2015, it was trading at about N187 to a dollar.

The administration has faced backlash for its handling of the country’s fiscal and monetary policies. Officials however dismissed the criticisms, saying the government came on board at a time of perilous economic situation that stemmed from decades of mismanagement by previous administrations.

Meanwhile, at the Investors & Exporters Foreign Exchange (I & EFX) window, the Naira closed down by 0.04per cent, 0.07per cent and 0.54per cent against the dollar, euro and pound at N411.67, N486.64 and N569.39 respectively.

Money Market rates rose today as Open Buy Back and Overnight rates increased by 367basis points each to close at 12.50per cent and 13per cent respectively.

The bond market traded on a quiet note today, although yields increased on some maturities. The yields on the 7yr and 10yr benchmark bonds close flat at 11.21per cent and 11.56 per cent respectively, while the yield on the 5yr bond was down up by 21bps to 10.78per cent.